Posted: February 12th, 2016

Discounted cash flow analysis is also called time value of money analysis. It is the technique to covert a cash flow amount occurring at one time point into a cash flow amount occurring at

Discounted cash flow analysis is also called time value of money analysis. It is the technique to covert a cash flow amount occurring at one time point into a cash flow amount occurring at another time point with the equivalent value. It is said that this technique is fundamentally important in any investment analysis, particularly in long-term investment analysis such as capital budgeting decisions. EXPLAIN why.